What do you do about keeping your savings safe in the best way?
The savings account that we keep our money in has long been a popular way to save our hard-earned money, we as a consumer typically have two types of accounts to keep our money safe. One is a Current account that fulfills our spending requirements and the other is a Savings account where we keep our real savings.
There is one question which can haunt you
Why do people keep money in a bank? That’s because we all need money to retire on and need to keep it safe. People are also always concerned with the return they get on the principal sum.
Better ways to keep your savings completely safe:
Let’s look at some alternatives people also considering.
Savings Accounts made compulsory
The traditional, yet simplest method is to keep your money with the bank. They are flexible which means you can withdraw money whenever you required, in addition, the ATM and credit cards make the transaction easier. The bank provides a rate of interest that can inflate your saving amounts.
Federal Bonds which helps in proper investment
Federal bonds take the funds and ensure securities in return. It’s also relatively safe for your savings. The U.S treasury is one of the risk-free securities that provides facilities to keep the cash. A government federal bond typically matures over a 10-year period. The bonds have fixed-rate however the bond rates are lower during the time of crisis.
Real Estate helps in reconstruction and usage
Real estate has many positive aspects. Become a landlord by renting a property and let your tenants pay off your mortgages. It has fewer risks and can return up to 10% annually. They are ideal for short term investment.
The cryptocurrency which deals with a valuable network
Cryptocurrency is one of the modern investment options, there are numerous options available whereas bitcoins are most popular. This is still an emerging technology and has a high risk. The value of bitcoins is gets dropped significantly that increases higher chance of loss hence, the funds depend on future enhancement. Although, it’s high reward value attracts a large number of investors to fund in cryptocurrencies.
Certificate of Deposit on times of need
Certificate of Deposit or CD is a fixed-term loan where the bank keeps the money for a certain amount of time like six months, one year, or two years. In return, they offer you a rate of interest when the Certificate of Deposit matures. If the money is kept for longer durations, more interest is paid. A Certificate of Deposit has a better rate of interest than the regular savings. The drawbacks are you can withdraw the amount before maturity but have to pay a penalty for it.
Conclusion
Sometimes mistrusts towards the banks and other financial organizations elicit some timorous individuals to explore other alternatives to stash away their wages. So one seeks to safe keep their earnings in Mutual Funds, or making Federal Bonds, or investing in a business, or buying luxury assets, or investing in the share market.
But since the COVID-19 outbreak which has made the Stock Market unstable, the banks are a much safer option. Here are some ways, that to keep the savings not only safe but also to get an interest rate in return. All the investments are made for short term and long terms as well, so keep in mind before choosing the right method for the savings.
